What are the minimum coverage limits per occurrence and in the aggregate for the Comprehensive General Liability Insurance that Carvel franchisees must maintain?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
180 days after the Effective Date |
14. Section 10.1.C. (Grand Opening Advertising):
The Grand Opening Obligation is [Select only one: for an Other Location: $3,000 [OR for a Streetside Location: $7,500.
15. Section 10.1.E. (Local Marketing Obligation):
Your Local Marketing Obliga
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, franchisees are required to maintain Comprehensive General Liability Insurance. This insurance must include Products & Completed Operations coverage. The minimum coverage limits are $1,000,000 per occurrence and $2,000,000 in the aggregate.
This means that for any single incident, the insurance policy will cover up to $1,000,000 in damages. The aggregate limit of $2,000,000 represents the total amount the insurance company will pay out for all claims during the policy period, typically one year.
Carvel franchisees should also be aware that the policy may have a deductible. The FDD states that there is a maximum $5,000 deductible per occurrence. This is the amount the franchisee would need to pay out-of-pocket before the insurance coverage kicks in. Franchisees should factor in the cost of insurance, including premiums and potential deductibles, when assessing the overall financial investment in a Carvel franchise.